CBSE Class 11 Accountancy Notes Last Updated : 21 Apr, 2025 Comments Improve Suggest changes Like Article Like Report Accountancy is a practice through which business transactions are recorded, classified, and reported for the proper and successful running of an organization. GeeksforGeeks Class 11 Accountancy Notes have been designed according to the CBSE Syllabus for Class 11. These revision notes consist of detailed Chapterwise important topics and concepts. Here, the learners can get easy access to the Chapterwise notes from the below-mentioned quick links. The notes contain 11 chapters covering every important topic like Bills of Exchange, GAAP, Financial Statements, Journal, Ledger, Reserves, Depreciation, Bank Reconciliation Statement, Trial Balance, and many more. PART - AChapter 1: Introduction to AccountingAccounting means identifying, recording, measuring, and communicating the Accounting Information with its different users. Chapter 1 Introduction of Accounting of Class 11th Accountancy describes the basic concept of accounting, accounting information, and different users of accounting information in detail for a better understanding of the subject. The notes of this chapter also contain basic accounting terms like capital, profit, loss, drawings, purchase, sale, etc., to build a strong base of the subject so that the learners can easily understand further chapters.Introduction to AccountingTypes and Users of Accounting InformationDifference between Bookkeeping and AccountingAccounting: Objectives, Characteristics, Advantages, Disadvantages and Role of AccountingBasic Accounting TermsDifference between Accounting and AccountancyChapter 2: Theory Base of AccountingThe second chapter of Class 11th Accountancy Part-A consists of the basis of accounting and accounting standards. The notes also cover the basic and important accounting concepts in detail, like Business Entity Concept, Going Concern Concept, Cost Concept, Matching Concept, and many more. The below-mentioned quick links also describe the International Financial Reporting Standards and Generally Accepted Accounting Principles for accounting. Another major topic to understand the concept of Accounting, Single and Double Entry Systems of Accounting, is also mentioned in the notes. Accounting Standards: Need, Benefits, Limitations and ApplicabilityIFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles)Difference between Cash Basis and Accrual Basis of AccountingBasic Accounting Concepts Systems and Basis of Accounting | Single and Double Entry SystemChapter 3: Recording of Business TransactionsAs we know from the definition of Accountancy, the business transactions of an organization are recorded for further reference and preparation of financial statements. The third chapter of Class 11th Accountancy Part-A contains all the required information on how to record a transaction, where to record a transaction, and how to transfer the recorded transactions from Journal to Ledger. It is the most important chapter of Accountancy as it will help in solving the full-fledged questions of Accountancy. The notes of this chapter include detailed knowledge of the important topics like Accounting Equation, Journal Entry, Cash Book, Sales Book, Ledger, and many more with meaning, format and examples. The below-mentioned quick links are sufficient to understand the Recording of Business Transactions. What is an Accounting Voucher? Explain the Types of Vouchers.Introduction to Accounting EquationAccounting Equation | Increase in Assets and Capitals both and Increase in Assets and Liability bothAccounting Equation | Decrease in Assets and Capital both and Decrease in Asset and Liability bothAccounting Equation|Decrease in Capital and Increase in the Liability, Decrease in Liability and Increase in the Capital and Increase and Decrease in AssetsAccounting Equation|Sale of Goods and Calculation of Net Worth (Owner’s Equity) Or CapitalJournal EntriesRules of Journal EntryJournal Entry (Capital, Drawings, Expenses, Income & Goods)Journal Entry for CapitalJournal Entry for DrawingsJournal Entry for Paid ExpensesJournal Entry for IncomeJournal Entry for Sales and Purchase of GoodsJournal Entry for Cash and Credit TransactionsJournal Entries | Banking Transactions (Part-1)Journal Entries | Banking Transactions (Part-2)Journal Entry for AssetsJournal Entry for DepreciationJournal Entry for Discount Allowed and ReceivedJournal Entry for Full/Final SettlementWhat is a Compound Journal Entry ?Opening Journal EntryJournal Entry for Bad Debts and Bad Debts RecoveredJournal Entry for Loss of Insured Goods/AssetsJournal Entry for Loan TakenJournal Entry for Loan GivenJournal Entry for Outstanding ExpensesJournal Entry for Prepaid or Unexpired or Advance ExpensesJournal Entry for Accrued Income or Income DueJournal Entry for Income Received in Advance or Unearned IncomeJournal Entry for Income TaxJournal Entry for Life Insurance Premium & Employee’s Life Insurance PremiumJournal Entry for Interest on CapitalJournal Entry for Interest on DrawingsJournal Entry for Use of Goods in BusinessJournal Entry for Expenditure on Assets (Erection or Installation)Journal Entry for Expenses on Purchase of GoodsJournal Entries under GST (Goods and Services Tax)Cash Book: Meaning, Types. and ExamplePurchases Book: Meaning, Format, and ExampleSales Book: Meaning, Format and ExamplePurchase Return Book: Meaning, Format, and ExampleSales Return Book: Meaning, Format, and ExampleJournal Proper: Meaning, Format and ExamplesLedger | Meaning, Format, Example and Balancing of AccountsChapter 4: Bank Reconciliation StatementThe fourth chapter of Class 11th Accountancy, Bank Reconciliation Statement is one of the important chapters of Accountancy. The notes of this chapter cover the meaning, format, and example of the Bank Reconciliation Statement. It also describes how to prepare a statement reconciling the balances of an organization's Cash Book and Pass Book. Bank Reconciliation StatementPreparation of Bank Reconciliation StatementDifference between Bank Statement and Bank Reconciliation StatementPreparation of BRS without correcting Cash BookBank Reconciliation Statement (BRS) : Without Correcting Cash BookPreparation of Bank Reconciliation Statement with Amended Cash BookBank Reconciliation Statement (BRS): When Extracts from Cash Book and Pass Book are givenChapter 5: Depreciation, Provisions, and ReservesThe fifth chapter of Class 11th Accountancy Part-A is Depreciation, Provisions and Reserves. The important topics covered in the notes of this chapter are Depreciation, Methods of Calculating Depreciation (SLM and WDV Methods), Accounting Treatment of Depreciation, Reserves, Provisions, Different types of Reserves, and many more. The notes provide detailed information on these topics with formulas to calculate and examples for a better understanding of the topic. Depreciation: Features, Causes, Factors and NeedMethods of charging DepreciationStraight Line Method of Charging DepreciationWritten Down Value MethodDifference between Straight Line and Written Down Value Method of calculating DepreciationDifference between Depreciation and AmortizationProvisions in Accounting – Meaning, Accounting Treatment, and ExampleReserves in Accounting: Meaning, Accounting Treatment, Importance, and ExampleDifference between Provisions and ReservesReserves and its TypesDifference between Capital Reserve and Revenue ReserveChapter 6: Trial Balance and Rectification of ErrorsAlthough Trial Balance is not a part of the accounting process of an organization, it is essential to ascertain the accuracy of the Ledger Accounts and determine any mistake or error in the Accounts. Chapter 6 of Class 11th Accountancy Part-A, Trial Balance and Rectification of Errors covers the detailed information on how to prepare a trial balance, its format, objectives, etc. The notes also consist of important topics like Detection of Errors in Trial Balance, Rectification of Errors, and Suspense Account. Trial Balance: Meaning, Objectives, Preparation, Format, and ExampleTypes of Errors in Trial BalanceDetection and Rectification of Errors in Trial BalanceWhat is a Suspense Account?Chapter 7: Bills of ExchangeThe last chapter of Class 11th Accountancy Part-A is Bills of Exchange. The important topics covered in the notes of this chapter are Bills of Exchange, Promissory Note, How these two (Bills of Exchange and Promissory Note) are different from each other, its accounting treatment, and important terms such as Term of Bill, Accommodation Bill, Discounting of Bill, Maturity of Bill, etc. Bills of Exchange: Meaning, Features, Parties, and AdvantagesPromissory Note: Features and PartiesDifference between Bills of Exchange and Promissory NoteImportant Terms in Bills of ExchangeAccounting Treatment of Bills of ExchangePART - BChapter 1: Financial StatementsFinancial Statements are statements depicting the financial position, profit and loss, and cash flow position of an organization. The first chapter of Accountancy Part-B contains detailed information about the financial statements and their adjustments. The notes also describe the purpose and importance of preparing the financial statements for an organization and its different users. Other important topics of this chapter are Stakeholders, Capital, Revenue, Operating Profit, and many more. Introduction to Financial StatementsFinancial Statements with AdjustmentsFinancial Statements with Adjustments (Journal Entries)Financial Statement with Adjustment with Examples-IAdjustment of Closing Stock in Final Accounts (Financial Statements)Adjustment of Outstanding Expenses in Final Accounts (Financial Statements)Adjustment of Prepaid Expenses in Final Accounts (Financial Statements)Adjustment of Accrued Income in Final Accounts (Financial Statements)Adjustment of Unearned Income in Final Accounts (Financial Statements)Financial Statement with Adjustment with Examples-IIAdjustment of Interest on Capital in Final Accounts (Financial Statements)Adjustment of Interest on Drawings in Final Accounts (Financial Statements)Adjustment of Interest on Loan in Final Accounts (Financial Statements)Adjustment of Proprietor’s Salary in Final Accounts (Financial Statements)Adjustment of Interest on Deposits in Final Accounts (Financial Statements)Financial Statement with Adjustment with Examples-IIIAdjustment of Depreciation in Final Accounts (Financial Statements)Adjustment of Appreciation in Final Accounts (Financial Statements)Adjustment of Bad Debts in Final Accounts (Financial Statements)Adjustment of Provision for Bad and Doubtful Debts in Final Accounts (Financial Statements)Adjustment of Bad Debts Recovered in Final Accounts (Financial Statements)Financial Statement with Adjustment with Examples – IVAdjustment of Provision for Discount on Debtors in Final Accounts (Financial Statements)Adjustment of Provision for Discount on Creditors in Final Accounts (Financial Statements)Financial Statement with Adjustment-Loss of Insured Goods & Assets (All three cases)Adjustment of Goods given as Charity or Free Sample in Final Accounts (Financial Statements)Adjustment of Goods used for Personal Purpose in Final Accounts (Financial Statements)Financial Statement with Adjustment with Examples-VAdjustment of Use of Goods in Business in Final Accounts (Financial Statements)Adjustment of Manager’s Commission in Final Accounts (Financial Statements)Adjustment of Deferred Revenue Expenditure in Final Accounts (Financial Statements)Financial Statement with Adjustment-Loss of Insured Goods & Assets (All three cases)Stakeholders and their Information RequirementsCapital Expenditure | Meaning, Example and Accounting TreatmentRevenue Expenditure | Meaning, Types, Example and Accounting TreatmentCapital Receipts | Meaning, Types, Components, and Accounting TreatmentRevenue Receipts | Meaning, Features, Example and Accounting TreatmentDifference between Capital Expenditure and Revenue Expenditure in AccountancyDifference between Capital Receipts and Revenue Receipts in AccountancyTrading and Profit and Loss Account: Opening Journal EntriesOperating Profit (EBIT): Meaning, Formula and ExampleBalance Sheet: Meaning, Format, Need and ObjectivesHow to prepare a Balance Sheet? Comment More infoAdvertise with us Next Article Introduction to Accounting N nupurjain3 Follow Improve Article Tags : Accountancy Commerce Commerce - 11th Class 11 Accountancy Similar Reads CBSE Class 11 Accountancy Notes Accountancy is a practice through which business transactions are recorded, classified, and reported for the proper and successful running of an organization. GeeksforGeeks Class 11 Accountancy Notes have been designed according to the CBSE Syllabus for Class 11. These revision notes consist of deta 8 min read Part AChapter 1: Introduction to AccountingIntroduction to AccountingWhat is Accounting?The American Institute of Certified Public Accountants(AICPA) defines Accounting as the art of recording, classifying, and summarizing the transactions and events that are in monetary terms efficiently and effectively and interpreting the results. The main aim behind the accountin 6 min read Types and Users of Accounting InformationAn organisation's financial information is recorded, examined, summarised, and interpreted through the accounting process. Accounting Information is needed by stakeholders of the firm, including the employees, owners, creditors, banks and other lenders, regulatory agencies, and tax authorities, amon 4 min read Difference between Bookkeeping and AccountingBookkeeping and Accounting are two different processes in Accountancy. They are the two fundamental aspects of financial management, but they serve different purposes and involve different tasks. Bookkeeping is the process of systematically maintaining records or books of accounts of an organization 5 min read Accounting: Objectives, Characteristics, Advantages, Disadvantages and Role of AccountingThe American Institute of Certified Public Accountants(AICPA) defines accounting as an art of recording, classifying, and summarising the transactions and events that are in monetary terms efficiently and effectively and interpreting the results. The main aim of the accounting process is the ascerta 9 min read Basic Accounting TermsAccounting is the process of measuring and recording all the financial transactions that happened in a financial year. It includes summarizing, analyzing and recording the data. It helps in getting a clear picture of the financial position of the business by seeing the value of a company’s assets an 15+ min read Difference between Accounting and AccountancyAccounting and Accountancy are often considered as one and the same; however, these are two different concepts.What is Accounting?Accounting is simply the process of recording all the business transactions of a financial year, it starts where the bookkeeping gets stops.Accounting can be defined as t 4 min read Chapter 2: Theory Base of AccountingAccounting Standards : Need, Benefits, Limitations and ApplicabilityAccounting is a process of recording an organisation's financial exchanges in order to retain data that can be referred to in the ,future to make important decisions. But it is very necessary that the records are maintained in a proper format and all the firms follow some specific rules to maintain 4 min read IFRS (International Financial Reporting Standards) and GAAP (Generally Accepted Accounting Principles)What is IFRS?International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board. The main AIM of IFRS is to provide guidance on the preparation and presentation of statements related to finance. IFRS is used in over 140 countries, 5 min read Difference between Cash Basis and Accrual Basis of AccountingThe Basis of Accounting describes the method by which the financial transactions and activities are accounted for and reported in the books of accounts to determine the profit or loss of any company. Profit earned or loss incurred by the business can be determined either by Cash Basis of Accounting 4 min read Accounting Concepts: Types, Examples & PrinciplesTheory Base of Accounting consists of accounting concepts, principles, rules, guidelines, and standards that help an individual understand the basics of accounting. These Concepts are developed over time to bring consistency and uniformity to the accounting process. GAAP or Generally Accepted Accoun 12 min read Systems and Basis of Accounting | Single and Double Entry SystemMeaning of Basis of AccountingThe Basis of Accounting is related to the timing of recording the business transaction in the books of account. It is concerned with a specific time period at which all the incomes and expenses are recorded by a business enterprise. There are two bases for recording the 6 min read Chapter 3: Recording of Business TransactionsAccounting Voucher: Format & Types of VouchersIn a business, there are numerous transactions that take place on regular basis, these can be the purchase and sale of goods and services, receiving or paying cash, and many more. Transaction basically refers to any monetary activity that affects the financial statements and is documented as an entr 6 min read Accounting Equation: Meaning, Formula, Components & CalculationThe accounting equation is the foundation of double-entry accounting, representing the relationship between a company's assets, liabilities, and equity. Business is run through transactions. Transactions are financial in nature and they affect the financial position of any business. Every transactio 4 min read Accounting Equation | Increase in Assets and Capitals both and Increase in Assets and Liability bothAccounting equation is based on the principle of dual aspect concept of accountancy because it holds true to the change that occurs due to any transaction taking place. A transaction can affect both sides of the equation by the same amount or any one side of the equation only, by both increasing or 2 min read Accounting Equation | Decrease in Assets and Capital both and Decrease in Asset and Liability bothEvery Accounting transaction affects at least two accounts simultaneously. These effects can be both positive and negative, depending upon the nature of the transaction. Some of the transactions that negatively affect the assets, liability, and capital are being discussed below:- 1. Decrease in Asse 2 min read Accounting Equation|Decrease in Capital and Increase in the Liability, Decrease in Liability and Increase in the Capital and Increase and Decrease in AssetsEvery accounting transaction, at a minimum, affects two accounts at the same time, either positively or negatively. Accounting Transaction that causes an increase in capital and decrease in liability, and increase and decrease in assets have been mentioned below:1. Decrease in Capital and Increase i 3 min read Accounting Equation|Sale of Goods and Calculation of Net Worth (Owner's Equity) Or CapitalEvery business unit sells goods for cash or on credit and sometimes at a profit or loss accordingly. When a good is sold either at a profit or a loss, along with asset and liability accounts, the capital account is also affected simultaneously. In the case of profit, the amount of profit is added to 5 min read Journal EntriesA Journal is a book in which all the transactions of a business are recorded for the first time. The process of recording transactions in the journal is called Journalising and recorded transactions are called Journal Entries.Every transaction affects two accounts, one is debited and the other one i 15+ min read Journal Entry Questions and SolutionsA journal is a book of original entries in which transactions are recorded, as and when they occur. The journal provides data-wise records of all the transactions and the amount of each transaction. Everyday transactions are recorded in a journal chronologically, giving a complete picture of the tra 4 min read Rules of Journal Entry in AccountingWhat is a Journal?A Journal is a book in which all the transactions of a business are recorded for the first time. We know that every transaction affects two accounts, one is debited and the other one is credited. 'Debit' (Dr.) and 'Credit' (Cr,) are the two terms or signs used to denote the financi 5 min read Cash Book: Meaning, Types, and ExampleWhat is a Cash Book?A Cash Book is an Original Entry (or Prime Entry) book in which all cash and bank transactions are documented chronologically. When the business is small, it is easy to record every transaction in a single book called a 'Journal'. Journal is also known as the book of original ent 7 min read Purchase Book : Meaning, Format, and ExampleWhat is a Purchase Book?Purchase Book is prepared by the firms to record the credit purchase of goods. Purchase of goods for cash and purchase of other things other than goods are not recorded in the purchase book. Cash purchases are recorded in Cash Book and other things are recorded in Journals an 3 min read Sales Book: Meaning, Format and ExampleBusiness these days had grown immensely. With the growth of the firms, the number of transactions in the business has also increased. The transactions in a business are of different natures and affect different accounts. So, it is impossible to record all the transactions in one place, i.e., 'Journa 5 min read Purchase Return Book : Meaning, Format, and ExampleWhat is a Purchase Return Book? The Purchase Return Book refers to the subsidiary book where the record of the 'return of goods purchased on credit' is maintained. It is also called as 'Return Outward Book'. There could be a number of factors for which the suppliers might return the goods that they 6 min read Sales Return Book: Meaning, Format, and ExampleWhen the business is small, it is easy to record every transaction in a single book called 'Journal'. Journal is also known as the book of original entry. But gradually when the business expands, it becomes inconvenient to record such a large number of transactions in a single book. So, the book of 6 min read Journal Proper: Meaning, Format and ExamplesWhat is Journal Proper?Journal Proper is the book that is maintained to record those transactions which are not recorded in the special books. Transactions that do not find a place in any other subsidiary book, such as Cash Book, Purchase Book, Sales Book, Bills Payable Book, Purchase, and Sales Ret 4 min read Ledger | Meaning, Format, Example and Balancing of AccountsWhat is Ledger? A Ledger records transactions from the journal and forms separate accounts for them in chronological order. A Ledger is a date-wise record of all the transactions related to a particular account. Ledgers are crucial sources of financial records. A ledger is formed after the journal a 3 min read Chapter 4: Bank Reconciliation StatementBank Reconciliation Statement (BRS) | Full Form of BRS and Need of BRSWhat is Bank Reconciliation Statement (BRS)?A statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called Bank Reconciliation Statement. It is a statement prep 5 min read Difference between Bank Statement and Bank Reconciliation StatementA Bank Statement and a Bank Reconciliation Statement are often considered as same. But there are differences between them. A Bank Pass Book is the true copy of the account of the customer in the books of the bank, whereas a Bank Reconciliation Statement is a statement prepared mainly to reconcile th 5 min read Preparation of BRS without correcting Cash BookBank Reconciliation Statement is prepared to compare the balances of cash book and passbook and correct the mistakes recorded in them. The balance of deposits held at the bank is referred to as the debit balance. The same balance becomes the credit balance in the passbook. In some cases, a bank reco 3 min read Bank Reconciliation Statement (BRS) : Without Correcting Cash BookThe cash balance as shown in the bank statement and the cash balance as shown in the business's cash book are compared in a bank reconciliation statement. It aids in locating and elucidating any discrepancies between the two balances brought on by mistakes, omissions, or variations in time. One of t 3 min read Preparation of Bank Reconciliation Statement with Amended Cash BookA statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called Bank Reconciliation Statement. It is a statement prepared on a particular date to reconcile the b 4 min read Bank Reconciliation Statement (BRS): When Extracts from Cash Book and Pass Book are givenA statement showing all the items of difference between the bank column of the Cash Book and the bank balance depicted in the Pass Book on a particular date and for a particular period of time is called a Bank Reconciliation Statement. It is a statement prepared on a particular date to reconcile the 3 min read Chapter 5: Depreciation, Provisions, and ReservesDepreciation: Features, Causes, Factors and NeedDepreciation refers to the decrease in the value of assets of the company over a time period due to use, wear and tear, and obsolescence. In others words, it is the method to allocate the cost of an asset over its useful life. Depreciation is always charged on the cost price of the asset and not on 6 min read Methods of charging DepreciationDepreciation refers to the decrease in the value of assets of the company over the time period due to use, wear and tear, and obsolescence. In others words, It is the method to allocate the cost of an asset over its useful life. Depreciation is always charged on the cost price of the asset and not o 5 min read Straight Line Method of Charging DepreciationBusinesses choose different methods for calculating depreciation according to their need. One of the most prominent methods for calculating depreciation is the Straight Line Method. Under this method of charging depreciation, the amount charged as depreciation for any asset is fixed and equal for ev 3 min read Written Down Value (WDV) Method of DepreciationBusinesses choose different methods for calculating depreciation according to their need. One of the most prominent methods for calculating depreciation is the Written Down Value Method. Under this method of charging depreciation, the amount charged as depreciation for any asset is charged at a fixe 3 min read Difference between Straight Line and Written Down Value Method of calculating DepreciationThe word "depreciation" comes from the Latin word 'depretium' where 'De' means decline and 'pretium' means price. Thus the word 'depretium' stands for the decline in the value of assets. Depreciation refers to the decrease in the value of assets of the company over the time period due to use, wear a 4 min read Difference between Depreciation and AmortizationDepreciation and Amortisation are two different concepts used in accounting to calculate the value of an asset. Depreciation is a method to reduce the value of fixed assets due to wear & tear whereas amortisation is dividing the cost of an asset over the number of years of its life. Depreciation 3 min read Provisions in Accounting - Meaning, Accounting Treatment, and ExampleA provision in accounting refers to an amount that has been set aside from the profits of the business in order to meet an unanticipated loss. All business units set aside some part of their current year's profits in order to "provide" for some certain unforeseen financial crunch that may arise in t 2 min read Reserves in Accounting: Meaning, Accounting Treatment, Importance, and ExampleFor any organisation, it is important to enjoy a sound and strong financial position. A sound financial position helps the business to meet up all the contingencies which can be anticipated or unanticipated. So, it is always preferable for the business to not distribute all the profits to the owners 8 min read Reserves and its TypesAny amount of money that has been set aside for certain purposes or reasons in a business is termed a reserve. In businesses, generally, a part of earnings is kept aside for unforeseen financial situations. This reserve may be used for renovation of the offices, purchasing new machines and new softw 4 min read Difference between Capital Reserve and Revenue ReserveIn common terms, a Reserve is anything retained for the future. Similarly, in Accountancy, Reserve means a part of the profit that has been retained and kept aside by the companies to meet their future needs. Reserves strengthen the financial position of the companies and make them more competitive. 3 min read Chapter 6: Trial Balance and Rectification of ErrorsTrial Balance: Meaning, Objectives, Preparation, Format & ExampleTrial Balance is basically a statement having a debit side and a credit side where all the debit balances of journal entries and ledger postings are recorded on the debit side of the trial balance, and all the credit balances of journal entries and ledger postings are recorded on the credit side of 6 min read Types of Errors in Trial BalanceA Trial Balance is a statement prepared with the balances of the ledger account, with a motive to verify the accuracy of the accounts. The accounts showing the debit balance are posted on the debit side of the trial balance, and the accounts showing the credit balance are posted on the credit side o 4 min read Detection and Rectification of Errors in Trial BalanceWhat is Trial Balance?A Trial Balance is a statement prepared with the balances of the ledger account, with a motive to verify the accuracy of the accounts. The accounts showing the debit balance are posted on the debit side of the trial balance, and the accounts showing the credit balance are poste 7 min read Suspense Account : Meaning, Journal Entry & FormatWhat is Suspense Account?A Suspense Account is a ledger account used for the temporary recording of business transactions. The necessity for a suspense account stems from the inability to identify the appropriate ledger account for the transaction to be recorded. The transactions or amounts transfer 4 min read Chapter 7: Bills of ExchangeBills of Exchange: Meaning, Features, Parties, and AdvantagesWhat is Bill of Exchange?A bill of exchange is a written order that one party receives from another requiring them to pay the other a specific amount of money, either immediately or at a later date. It is important that such an order of payment should be unconditional and be accepted by both parties 4 min read Promissory Note: Features and PartiesWhat is a Promissory Note?When the purchaser of the goods or debtor of any business himself writes a note, signs it, and gives it to the seller of the goods, the note signed by the debtor becomes a promissory note. It can also be described as a verbal or written unconditional promise by the debtor t 3 min read Difference between Bills of Exchange and Promissory NoteBills of Exchange and Promissory Notes are two different concepts of accountancy.What is Bills of Exchange?Bills of Exchange is a written document that binds one party to pay a certain amount to another party on demand or on the expiry of a fixed period of time. There are three parties to the bills 4 min read Important Terms in Bills of ExchangeWhat is Bill of Exchange?A bill of exchange is a very popular negotiable instrument. It is a written order drawn upon one party by the other, whereby the former is required to pay a stipulated sum of money to the latter, either on the latter's demand or at some point in the future. It is noteworthy 9 min read Accounting Treatment of Bills of ExchangeWhat is a Bill of Exchange?A bill of exchange is a written order that one party receives from another requiring them to pay the other a specific amount of money, either immediately or at a later date. It is important that such an order of payment should be unconditional and be accepted by both parti 2 min read Part B Like